The role of employee engagement as a mediating effect in influencing corporate culture and human capital of defense industry

These days, public and private organization have faced a new challenge to reach its value added products caused by the rise of globalization. It is characterized by the uncertain and turbulence environment. Consequently, every organization has to embrace a continuous improvement in order to reach an organization effectiveness. Similarly, defense industries are trying to produce advance defense weapon system. In Asia country, such as, China, Japan, South Korea, Taiwan and Singapore defense industry capability have developed significantly. Defense Industry is a complex organization with high technology platform. In the future, Indonesia defense industries need to improve its effectiveness by benchmarking with other advance defense industries nation. Currently, defense industries in the world have changed the way they are doing business in order to adapt and respond the new environment. Diversification strategy, restructuring, downsizing, merger and acquisition strategy have done to streamline the organization. However, these strategies are not enough, while culture and employee have not grasped carefully. Therefore, the crucial prerequisite to develop an effective defense industry is transforming corporate culture, developing human capital and improving employee engagement.